This paper investigates how competition in the media affects the quality of news. In our model, demand for news depends on the market perception of the media's ability to receive correct information: it is positive if and only if news is potentially useful for the voting decision. When the media receives information which contradics commonly shared priors, it either reports this information or it confirms the priors: "most likely, my information is correct, but my potential buyers may be unable to assess the quality of news and attribute it according to common priors". We ask whether competition may help to elicit information from the media. Our answer is positive when news covers issues on which the priors are sufficiently precise, or the follow-up quality assessment is a likely event. However, when news concerns controversial issues and it is hardly possible to asses its quality, competitive pressures induce confirmatory reporting.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: CP 8888, succursale Centre-Ville, Montréal, QC H3C 3P8|
Phone: (514) 987-8161
Web page: http://www.cirpee.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Timothy Besley & Robin Burgess, 2002.
"The Political Economy of Government Responsiveness: Theory and Evidence from India,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 117(4), pages 1415-1451.
- Timothy Besley & Robin Burgess, 2000. "The Political Economy of Government Responsiveness: Theory and Evidence from India," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 28, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Timothy Besley & Robin Burgess, 2000. "The political economy of government responsiveness: theory and evidence from India," LSE Research Online Documents on Economics 2308, London School of Economics and Political Science, LSE Library.
- Besley, Timothy J. & Burgess, Robin, 2001. "The Political Economy of Government Responsiveness: Theory and Evidence from India," CEPR Discussion Papers 2721, C.E.P.R. Discussion Papers.
- Timothy Besley & Andrea Prat, 2005.
"Handcuffs for the Grabbing Hand? Media Capture and Government Accountability,"
STICERD - Political Economy and Public Policy Paper Series
07, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Timothy Besley & Andrea Prat, 2006. "Handcuffs for the Grabbing Hand? Media Capture and Government Accountability," American Economic Review, American Economic Association, vol. 96(3), pages 720-736, June.
- Besley, Timothy J. & Prat, Andrea, 2002. "Handcuffs for the Grabbing Hand? Media Capture and Government Accountability," CEPR Discussion Papers 3132, C.E.P.R. Discussion Papers.
- Stromberg, David, 2001. "Mass media and public policy," European Economic Review, Elsevier, vol. 45(4-6), pages 652-663, May.
- Matthew Ellman & Fabrizio Germano, 2004.
"What do the papers sell?,"
Economics Working Papers
800, Department of Economics and Business, Universitat Pompeu Fabra, revised Feb 2006.
- Djankov, Simeon & Caralee, McLiesh & Nenova, Tatiana & Shleifer, Andrei, 2003.
"Who Owns the Media?,"
3606236, Harvard University Department of Economics.
- Simeon Djankov & Caralee McLiesh & Tatiana Nenova & Andrei Shleifer, 2001. "Who Owns the Media?," Harvard Institute of Economic Research Working Papers 1919, Harvard - Institute of Economic Research.
- Simeon Djankov & Caralee McLiesh & Tatiana Nenova & Andrei Shleifer, 2001. "Who Owns the Media?," NBER Working Papers 8288, National Bureau of Economic Research, Inc.
- Simeon Djankov & Caralee McLiesh & Tatiana Nenova & Andrei Shleifer, . "Who Owns the Media?," Working Paper 19470, Harvard University OpenScholar.
- Djankov, Simeon & McLeish, Caralee & Nenova, Tatiana & Shleifer, Andrei, 2001. "Who owns the media?," Policy Research Working Paper Series 2620, The World Bank.
- Marco Ottaviani & Peter Norman Sorensen, 2001.
"The Strategy of Professional Forecasting,"
01-09, University of Copenhagen. Department of Economics.
- Sendhil Mullainathan & Andrei Shleifer, 2005.
"The Market for News,"
American Economic Review,
American Economic Association, vol. 95(4), pages 1031-1053, September.
- Alan S. Gerber & Dean Karlan & Daniel Bergan, 2009.
"Does the Media Matter? A Field Experiment Measuring the Effect of Newspapers on Voting Behavior and Political Opinions,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 1(2), pages 35-52, April.
- Gerber, Alan & Karlan, Dean & Bergan, Daniel, 2006. "Does The Media Matter? A Field Experiment Measuring the Effect of Newspapers on Voting Behavior and Political Opinions," Working Papers 12, Yale University, Department of Economics.
- Daniel Bergan & Alan Gerber & Dean Karlan, 2009. "Does the media matter? A field experiment measuring the effect of newspapers on voting behavior and political opinions," Natural Field Experiments 00252, The Field Experiments Website.
- Scharfstein, David S & Stein, Jeremy C, 1990.
"Herd Behavior and Investment,"
American Economic Review,
American Economic Association, vol. 80(3), pages 465-79, June.
- Ambrus, Attila & Reisinger, Markus, 2006. "Exclusive vs Overlapping Viewers in Media Markets," Discussion Papers in Economics 1178, University of Munich, Department of Economics.
- Baron, David P., 2004. "Persistent Media Bias," Research Papers 1845r, Stanford University, Graduate School of Business.
- Matthew Gentzkow & Jesse M. Shapiro, 2006.
"Media Bias and Reputation,"
Journal of Political Economy,
University of Chicago Press, vol. 114(2), pages 280-316, April.
- Jeffrey Milyo & Tim Groseclose, 2005.
"A Measure of Media Bias,"
0501, Department of Economics, University of Missouri, revised 25 Aug 2005.
- Marco Ottaviani & Peter Sorensen, 1999.
Game Theory and Information
- Ambrus, Attila & Reisinger, Markus, 2006. "Exclusive vs Overlapping Viewers in Media Markets," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 161, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 797-817.
- John R. Graham, 1999. "Herding among Investment Newsletters: Theory and Evidence," Journal of Finance, American Finance Association, vol. 54(1), pages 237-268, 02.
- David Hirshleifer, 1993. "Managerial Reputation and Corporate Investment Decisions," Financial Management, Financial Management Association, vol. 22(2), Summer.
When requesting a correction, please mention this item's handle: RePEc:lvl:lacicr:0912. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuel Paradis)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.